Prudential standards in the Financial Services Bill: policy statement
The policy statement confirms the Government’s intention to implement the internationally agreed Basel III banking standards in the UK. The statement also announces the Government will take powers to enable the implementation of updated prudential rules for UK banks and investment firms.
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The Basel standards are an international framework that aims to strengthen the regulation, supervision, and risk management of banks. The standards are set by the Basel Committee on Banking Supervision. The UK played an active role in negotiating and agreeing the Third Basel Accord (Basel III) and is committed to its full, timely, and consistent implementation, alongside other major jurisdictions.
The Government will also take powers to enable the implementation of updated prudential rules for UK banks included in the Second Capital Requirements Regulation (CRRII), and to implement an updated prudential regime for investment firms in the UK